Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation. Can someone please help
The income statement and a schedule reconciling cash flows from operating activities to net income are provided below for Macrosoft Corporation.
Can someone please help me with this? I can't figure how to get the cash increase from sale of cash equivalents. That's the only thing I need!
MACROSOFT CORPORATION Income Statement For the Year Ended December 31, 2013 ($ in millions) Sales Cost of goods sold $ 318.00 (124.00) $194.00 Gross margin Salaries expense Insurance expense Depreciation expense Patent amortization expense Interest expense $40.40 20.40 10.40 4.40 12.40 (88.00) Loss on Gain on sale of cash equivalents sale of land (6.40) 2.40 102.00 (51.00) 51.00 (12.20) 12.20 $ 63.20 Income before taxes and extraordinary gain Income tax expense Income before extraordinary gain Extraordinary gain (sale of subsidiary) Less: Tax on gain 24.40 Net income Reconciliation of Net Income to Net Cash Flows from Operating Activities ($ in millions) Net income $ 63.20 Adjustments for noncash effects: Depreciation expense Patent amortization expense Loss on sale of land Extraordinary gain (sale of subsidiary) Decrease in accounts receivable Increase in inventory Increase in accounts payable Decrease in bond discount Increase in salaries payable Decrease in prepaid insurance Increase in income tax payable 10.40 4.40 6.40 (24.40) 6.40 (12.40) 18.40 1.40 6.40 4.40 10.40 Net cash flows from operating activities $ 95.00Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started